If one knows the benefit of getting car insurance, the next question one may ask may probably be “what kind of car insurance would I get?” Sometimes even those who are already currently paying for insurance may get frustrated because they seem to be paying off so much and they do not understand fully what they are paying. This is because insurances may take on many forms and it is best to know the difference between the forms of insurances in to understand why you are paying that amount and how much coverage your money is getting you.
There are 4 common types of car insurance packages and these are: (1) the fully comprehensive auto insurance type, (2) third party, fire and theft type, (3) third party insurance type and lastly (4) the specialized auto insurance type.
Fully comprehensive auto insurance
The fully comprehensive type of auto insurance is just what its name suggests. With this type you can the premium and rest assured that your insurance will cover whatever happens to your vehicle. It can cover accidents, whether or not they are your fault and it can even cover car theft. Most finance companies push for and sometimes even require acquiring of fully comprehensive auto insurance types.
While the upside to this type of insurance is that it provides maximum security and protection for your vehicle, one must also take note of some aspects when considering for a full comprehensive plane. One is that in contrast with the other types of plans, this would be the priciest. One also needs to take note of clauses in the insurance as often full comprehensive do not cover 100% of the cost of the vehicle and only offer up to 80% or so. This is rationalized by insurance companies for avoidance of fraudulent thefts or claims.
Third party, fire and theft insurance
This type of the auto insurance provides the middle ground for the affordability in contrast with the full comprehensive and the security when it comes to coverage. With this type of car insurance, events of accidental fire or theft may still be covered and if ever you get involved in a vehicular accident and it is your fault then it can be covered by the insurance.
Some clauses and downside that you have to consider with this type is in the third party clause which states the one has to be in a vehicular accident with another car and one is at fault. This excludes the event that you run over a tree or crash into a wall and if you are involved in an accident that is not your fault.
Third party insurance
This type of insurance is considered to be the basic type and covers the event that you get involved in an accident with another vehicle and it is your fault. As the name suggests, this type would be similar to the previous one except with the fire and theft insurance claims. This basic insurance package is usually not preferred except for those vehicles that have little or no value.
Specialized car insurance
The specialized car insurance type covers the ‘classic’ cars which are technically defined to be cars over 25 year of age. These specialized insurance often offer the same deals and protection as the full comprehensive type, however there is special consideration on the mileage that is acceptable on the car. So before signing up for this type, it might be good to read carefully between the fine prints first.